Los Angeles daily herald., 1887-08-28
DRESBACH'S DEAL.
He Cannot Settle With
His Creditors.
WHO WERE HIS HACKERS? ?
ROsenfeld's Property Transferred
to the Nevada Bank-The
Market Perplexed.

Associated Press Dispatches to the HERALD,
SAN Francisco, August 27.-The
announcement was made on the call
board this morning that Dresbach &
Rosenfeld, chief bull operators in
wheat, could not keep their agree
ment with the shorts, and the board
was at once adjourned. What effect
this will have on the street is not vet
known, but the announcement is ac-
cepted as a complete collapse of the
bull syndicate in wheat.
THE CONSEQUENCES UNKNOWN.
The full significance of the crash
will probably not be known for sew.
eral days. While Rosenfeld & Dres.
bach were supposed to be operating
for John w. Mackay, James C. Flood
and other large stockholders of the
Nevada Bank, the deals were all
made in their name, and all contracts
were made personally with them,
without any additional guarantees.
PLENTY OF PROMISES.
When the corner broke, on August
Sd, Dresbach & Rosenfield agreed tc
pay the difference between $2.O7 and
$l.7O per Genital, or 81 cents pei
GENITAL, in four monthly payments
The first payment fell due on Sep.
tember LIST.
THEY SAID THEY COULD PAY.
The price of wheat fell steadily to
$3.50, but the bull clique was expected
to be able to carry its big load, and
the announcement was made two DAYS
ago that the first installment of money
would be paid as agreed.
AN AWFUL SURPRISE.
The announcement to-day, there
fore. that the two big brokers would
repudiate their paper, was the last
straw, and was accepted as a final
surrender, and all the enormous
losses, with the exception of possibly
two million dollars advanced by the
Bull" clique early in the deal, are
to fall upon brokers and others who
had dealings with these two repre-
sentatives of other people, whose
identity has not vet been discovered.
NO FAILURES REPORTED.
There is considerable excitement on
the street, but no failures have yet
been recorded, and while many of the
big houses have been hit very hard,
the hope is expressed that they will
be able to pull through. The feeling
is very bitter among the dealers, and
the entire deal is spoken of as one of
the worst in the history of trade.
THEIR EFFORTS AT SETTLEMENT.
After returning the original deposit
money of the buyers and sellers at a
rate of SO per ton on the 103 900 tons
named in the agreement of August Sd,
and which reduced margins from
$2.15 per GENITAL to $2.O5, Dresbach
and Rosenfeld had further margined
down 40, 900 tons to $1.70. They paid
out large sums during the last few
days, and to-day was the day when
the balance fell due.
THE HOLDERS BADLY LEFT.
1t would require about $4OO 900 to
meet this part OF the agreement and
the inability of Dresbach 4 Rosenfeld
to pay out any more money therefore
leaves about sixty tons of wheat in
the hands of holders, standing them
in S2.05 per Genital, which cannot be
sold except at panic prices.
5000 TONS AS SECURITY.
OF the 10000 tons of wheat placed
by Dresbach & Rosenfeld in the hands
Of the directors of the Produce Ex-
change, as security for the fulfillment
OF the agreement of August 3rd, about
6O0O tons now remain, the balance
having been released as the margin
money was returned.
A DROP IN THE BUCKET.
This 5000 tons could not be
sold to-day at over $26 ton, or $780,
900, and that is all that the owners of
the 60,000 tons, costing $205 per
GENITAL, or 81, ,230, 900, have to secure
them against loss.
BROKERS PERPLEXED.
The street is practically at sea re-
5arding the outcome and few can be
found to hazard an opinion as to the
outcome. The fact is we'll settled that
firms having unsettled contracts with
Dresbach q Rosenfeld will have to
bear the big losses growing out of the
deal.
THE NEVADA BANK LINK.
This afternoon John Rosenfeld filed
: deed transferring all his property to
the Nevada Bank. This is supposed
20 prove the connection of that institu-
ion with the deal. Neither Mackay
nor Flood could be seen at their offices
;o-day and it was not expected that
hey would make a statement in any
went.
NO INFORMATION GIVEN.
Vice-President Brander of the Ne
yada Bank declined to make state
nent of any kind.
RosENFELD's EXPLANATION.
John Rosenfeld in explanation of
he decision reached by himself and
)resbach to not carry out their con-
ract said: "We have paid out all the
money we had and can get no more
accommodation at the banks and have
lad to stop. That is all there is in it.
ENGLAND WILL BE gENEFITTED
Some one will make a great deal of
money out of this for those who have
he coin-I mean the people of Eng
and-who will be able to pick up the
wheat we are holding at a song. If
We could have gained time we might
lave pulled through, but now all is
ver with u.s."
Bad Luck. rsr
MONTREAL, August 27.-The Herald
was burned last night for the